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When Calculating the Return on Assets, You Should Use Average

question 35

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When calculating the return on assets, you should use average total assets.


Definitions:

Clothiers

Businesses or individuals specializing in the selling of clothing.

Discount

A discount represents a reduction from the full price or value of goods, services, financial instruments, or the present value of future cash flows.

Safety Stock

Safety stock is additional inventory held to prevent stockouts due to uncertainties in demand or supply.

Inventory Level

The quantity of goods and materials on hand in a business' inventory at any given time.

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